When I first saw the title of this book, ‘Investment Trusts’. I thought that it would be quite a dry read. I was very wrong. This is a well written and easy to read guide to investment trusts. A must read for investors and financial advisers.

John Baron presents an extremely compelling case for investing in investment trusts instead of the more common and traditional unit trusts/ mutual funds.

As a very basic overview.

Unit trusts are open ended (except  funds from new investors) and trade at their net asset value

Investment trusts trade like shares on an exchange. They are closed ended (don’t accept new investor funds) and can trade at a discount or premium to their actual net asset values.

The book does a much better job of explaining the differences and goes into a lot more detail. Baron examines the factors which explain why unit trusts/OEICs under perform investment trusts. He clearly presents the opportunities which many investors may be missing out on.

The book is well researched (Baron has worked in the industry for many years). It is clear easy to understand, jargon free and well structured. It is difficult to argue with any of the authors conclusions. The book also has extra tips for successful investing and information on how to construct and monitor a trust portfolio. This is a must read for any investor who currently only invests in mutual funds. I’m not surprised it has a flawless record of 5 star reviews on Amazon.

5/5

Financial Times Guide to Investment Trusts: Unlocking the City’s Best Kept Secret is available here.